Seasonal Demand Drives Strong Early Spring Leasing Activity LAS VEGAS, May 2, 2024 /PRNewswire/ -- AMH (NYSE:AMH) (the "Company"), a leading large-scale integrated owner, operator and developer of single-family rental homes, today announced its financial and operating results for the quarter ended March 31, 2024. Highlights Rents and other single-family property revenues increased 6.5% year-over-year to $423.6 million for the first quarter of 2024. Net income attributable to common shareholders totaled $109.3 million, or $0.30 per diluted share, for the first quarter of 2024, compared to $117.5 million, or $0.32 per diluted share, for the first quarter of 2023. Core Funds from Operations ("Core FFO") attributable to common share and unit holders increased 5.8% year-over-year to $0.43 per FFO share and unit for the first quarter of 2024 and Adjusted Funds from Operations ("Adjusted FFO") attributable to common share and unit holders increased 6.5% year-over-year to $0.40 per FFO share and unit for the first quarter of 2024. Core Net Operating Income ("Core NOI") from Same-Home properties increased by 4.9% year-over-year for the first quarter of 2024. Achieved Same-Home Average Occupied Days Percentage of 96.2% in the first quarter of 2024, while generating 4.8% rate growth on new leases and 5.9% rate growth on renewals, resulting in 5.6% blended rate growth. Delivered a total of 469 high-quality and energy-efficient newly constructed homes from our AMH Development Program to our wholly-owned portfolio and unconsolidated joint ventures in the first quarter of 2024. "2024 is off to a strong start with demand accelerating into the spring leasing season as expected. Our property management team has done a great job positioning us for success as we enter our busiest period of the year," stated David P. Singelyn, AMH's Chief Executive Officer. "Additionally, stable and responsible growth through our differentiated AMH Development Program continues to add much needed national housing stock while also providing quality housing to residents and creating value for our shareholders. We remain on track to deliver another year of strong results." First Quarter 2024 Financial Results Net income attributable to common shareholders totaled $109.3 million, or $0.30 per diluted share, for the first quarter of 2024, compared to $117.5 million, or $0.32 per diluted share, for the first quarter of 2023. The decrease was primarily due to lower net gains on property sales, partially offset by higher rental rates. Rents and other single-family property revenues increased 6.5% to $423.6 million for the first quarter of 2024, compared to $397.7 million for the first quarter of 2023. Revenue growth was primarily driven by higher rental rates. Core NOI from our total portfolio increased 7.6% to $237.7 million for the first quarter of 2024, compared to $220.9 million for the first quarter of 2023. This growth was driven by a 7.0% increase in core revenues resulting primarily from higher rental rates, partially offset by a 5.9% increase in core property operating expenses. For the Company's Same-Home portfolio, core revenues increased 5.3% to $334.1 million for the first quarter of 2024, compared to $317.4 million for the first quarter of 2023, which was driven by a 5.9% increase in Average Monthly Realized Rent per property, partially offset by a 100 basis point decrease in Average Occupied Days Percentage. Core property operating expenses from Same-Home properties increased 5.9% to $114.8 million for the first quarter of 2024, compared to $108.4 million for the first quarter of 2023, primarily driven by increased property tax expense from anticipated 2024 property tax assessments and inflationary increases in repairs and maintenance and turnover costs, net and insurance costs. As a result, Core NOI from Same-Home properties increased 4.9% to $219.3 million for the first quarter of 2024, compared to $209.0 million for the first quarter of 2023. Core FFO attributable to common share and unit holders was $180.9 million, or $0.43 per FFO share and unit, for the first quarter of 2024, compared to $168.5 million, or $0.41 per FFO share and unit, for the first quarter of 2023. Adjusted FFO attributable to common share and unit holders was $166.0 million, or $0.40 per FFO share and unit, for the first quarter of 2024, compared to $153.5 million, or $0.37 per FFO share and unit, for the first quarter of 2023. These improvements were primarily attributable to higher rental rates. Portfolio Average Occupied Days Percentage was 95.3% for the first quarter of 2024, compared to 95.0% for the fourth quarter of 2023. Investments As of March 31, 2024, the Company's wholly-owned portfolio consisted of 59,343 homes, compared to 59,332 homes as of December 31, 2023, an increase of 11 homes during the first quarter of 2024, which included 441 newly constructed homes delivered to our operating portfolio through our AMH Development Program, 22 newly constructed homes to be disposed and 19 homes acquired through our National Builder Program, partially offset by 471 homes sold to third parties. During the first quarter of 2024, we also developed an additional 28 newly constructed homes which were delivered to our unconsolidated joint ventures, aggregating to 469 total program deliveries through our AMH Development Program. As of March 31, 2024, the Company had 728 properties held for sale and 3,004 properties held in unconsolidated joint ventures. Capital Activities, Balance Sheet and Liquidity In January 2024, the Company issued 932,746 Class A common shares under its at-the-market common share offering program (the "2023 At-the-Market Program") at an average sales price of $36.19 per share, receiving net proceeds of $33.2 million after commissions and other expenses of $0.5 million. In March 2024, the Company sold an additional 2,987,024 Class A common shares through a forward sale agreement under its 2023 At-the-Market Program at an average sales price of $37.03 per share for future estimated net proceeds of $108.6 million after commissions and other adjustments. The forward sale agreement expires in February 2025 and the Company expects to use these net proceeds to repay outstanding indebtedness, to invest in additional portfolio growth opportunities and for general corporate purposes. During the first quarter of 2024, American Homes 4 Rent, L.P. (the "Operating Partnership"), the entity through which the Company conducts substantially all of its business and owns, directly or through subsidiaries, substantially all of its assets, issued $600.0 million of 5.500% unsecured senior notes with a maturity date of February 1, 2034 (the "2034 Notes"), which carry a green bond designation and were issued under the Company's green finance framework. Interest on the 2034 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2024. The Operating Partnership received aggregate net proceeds of $595.5 million from this offering, after underwriting fees of $3.9 million and a $0.6 million discount, and before offering costs of $1.3 million. During the first quarter of 2024, the Company paid off the outstanding principal on the AMH 2014-SFR2 asset-backed securitization of approximately $460.6 million, which resulted in $1.0 million of charges related to the write-off of unamortized deferred financing costs and related legal fees. As of March 31, 2024, the Company had cash and cash equivalents of $124.8 million and had total outstanding debt of $4.6 billion, excluding unamortized discounts and unamortized deferred financing costs, with a weighted-average interest rate of 4.2% and a weighted-average term to maturity of 12.0 years. The Company had no outstanding borrowings on its $1.25 billion revolving credit facility. Additionally, the Company's AMH 2014-SFR3 securitization, which had a balance of $475.2 million as of March 31, 2024, is scheduled to mature in the fourth quarter of 2024. During the first quarter of 2024, the Company generated $56.8 million of Retained Cash Flow and sold 471 properties generating $144.7 million of net proceeds. Sustainability Update The Company published its sixth annual Sustainability Report highlighting its commitment to Environmental, Social, and Governance ("ESG") considerations as part of its strategy to deliver long-term value to its stakeholders. The report provides transparency on the Company's ESG performance with notable highlights including the opening of our first solar-enabled community, establishment of a Health and Safety Committee, and the launch of the AMH Cares Foundation. The full report can be downloaded on the Company's website at www.amh.com, under "Investor relations." 2024 Guidance Set forth below are the Company's current expectations with respect to full year 2024 Core FFO attributable to common share and unit holders and our underlying assumptions. In reliance on the exception provided by applicable SEC rules, the Company does not provide guidance for GAAP net income, the most comparable GAAP financial measure, or a reconciliation of 2024 Core FFO guidance to GAAP net income because we are unable to reasonably predict the following items which are included in GAAP net income: (i) gain on sale and impairment of single-family properties and other, net for consolidated properties and unconsolidated joint ventures, (ii) acquisition and other transaction costs and (iii) hurricane-related charges, net. The actual amounts for any and all of these items could significantly impact our 2024 GAAP net income and, as disclosed in our historical financial results, have significantly impacted GAAP net income in prior periods. Guidance Summary Full Year 2024(Unchanged) Core FFO attributable to common share and unit holders $1.70 - $1.76 Core FFO attributable to common share and unit holders growth 2.4% - 6.0% Same-Home Core revenues growth 3.75% - 5.75% Core property operating expenses growth 5.25% - 7.25% Core NOI growth 3.00% - 5.00% Full Year 2024(Unchanged) Investment Program Properties Investment Wholly owned acquisitions — — Wholly owned development deliveries 1,825 - 1,975 $700 - $800 million Wholly owned land and development pipeline — $100 - $150 million Pro rata share of JV and Property Enhancing Capex — $100 - $150 million Total capital investment (wholly owned and pro rata JV) 1,825 - 1,975 $0.9 - $1.1 billion Total gross capital investment (JVs at 100%) 2,200 - 2,400 $1.1 - $1.3 billion  Additional Information A copy of the Company's First Quarter 2024 Earnings Release and Supplemental Information Package and this press release are available on our website at www.amh.com, under "Investor relations." This information has also been furnished to the SEC in a current report on Form 8-K. Conference Call A conference call is scheduled on Friday, May 3, 2024 at 12:00 p.m. Eastern Time to discuss the Company's financial results for the quarter ended March 31, 2024 and to provide an update on its business. The domestic dial-in number is (877) 451-6152 (U.S. and Canada) and the international dial-in number is (201) 389-0879 (passcode not required). A simultaneous audio webcast may be accessed by using the link at www.amh.com, under "Investor relations." A replay of the conference call may be accessed through Friday, May 17, 2024 by calling (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (international), replay passcode number 13742950#, or by using the link at www.amh.com, under "Investor relations." About AMH AMH (NYSE:AMH) is a leading large-scale integrated owner, operator and developer of single-family rental homes. We're an internally managed Maryland real estate investment trust (REIT) focused on acquiring, developing, renovating, leasing and managing homes as rental properties. Our goal is to simplify the experience of leasing a home and deliver peace of mind to households across the country. In recent years, we've been named one of Fortune's 2023 Best Workplaces in Real Estate™, a 2024 Great Place to Work®, a 2023 Most Loved Workplace®, a 2023 Top U.S. Homebuilder by Builder100, and one of America's Most Responsible Companies 2024 and Most Trustworthy Companies in America 2024 by Newsweek and Statista Inc. As of March 31, 2024, we owned nearly 60,000 single-family properties in the Southeast, Midwest, Southwest and Mountain West regions of the United States. Additional information about AMH is available on our website at www.amh.com.  AMH refers to one or more of American Homes 4 Rent, American Homes 4 Rent, L.P. and their subsidiaries and joint ventures. In certain states, we operate under AMH Living or American Homes 4 Rent. Please see www.amh.com/dba to learn more. Cautionary Note Regarding Forward-Looking Statements This press release and the accompanying Supplemental Information Package contain "forward-looking statements." These forward-looking statements relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "intend," "potential," "plan," "goal," "outlook," "guidance" or other words that convey the uncertainty of future events or outcomes. Examples of forward-looking statements contained in this press release and the Supplemental Information Package include, among others, our 2024 Guidance, our belief that our acquisition and homebuilding programs will result in continued growth and the estimated timing of our development deliveries set forth in the Supplemental Information Package. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statements to conform to actual results or changes in its expectations, unless required by applicable law. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see the "Risk Factors" disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in the Company's subsequent filings with the SEC.   AMHCondensed Consolidated Balance Sheets(Amounts in thousands, except share data)   March 31, 2024 December 31, 2023 (Unaudited) Assets Single-family properties: